Matter of Moran v. McDonald

Summary

The Appellate Division, Third Department annulled the New York Commissioner of Health's determination imposing penalties on licensed funeral directors and officials of a funeral service institute. The court held that the petitioners could not be found to have aided violations involving false or fraudulent statements because the 2018 statute created an unrebutted presumption that the affected funeral directors had validly passed the licensing examination.

Holdings

1. Petitioners did not violate Public Health Law § 3455(1)(a) because they themselves made no false or fraudulent statement or representation, and the alleged conduct of the applicants could not be attributed to petitioners as a statutory false representation.
2. Petitioners could not be liable for aiding fraud because there was no underlying fraud after Laws of 2018, chapter 270, § 1 presumed that the affected funeral directors had successfully passed the examination and the Department failed to rebut that presumption.

Questions Presented

1. Whether the Department of Health could establish a violation of Public Health Law § 3455(1)(a) in an administrative licensing proceeding.
2. Whether petitioners' alleged collection and distribution of National Board Examination questions constituted aiding or inducing a false or fraudulent statement or representation under Public Health Law § 3455(1)(a).
3. Whether petitioners could be liable for aiding fraud when the Legislature had presumed that the affected funeral directors successfully passed the examination and the Department had not rebutted that presumption.

Disposition

annulled